Bitfarms Exits Latin America, Sells 70 MW Paraguay Mining Site for Up to $30M

Summary: Bitfarms Ltd. has finalized the sale of its 70 MW Paso Pe bitcoin mining site in Paraguay for up to $30 million, marking its departure from the Latin American market. The deal allows Bitfarms to focus on expanding its energy and digital infrastructure operations in North America.

Key Takeaways

Bitfarms has sold its Paraguay bitcoin mining site to Sympatheia Power Fund.
The sale, worth up to $30 million, is part of Bitfarms' strategy to focus on North American power infrastructure.
This move allows Bitfarms to redirect capital towards high-performance computing (HPC) and artificial intelligence (AI) initiatives.
Bitfarms aims to enhance its liquidity by accelerating the monetization of its assets.

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Bitfarms Sells Paso Pe Mining Site

On Friday, Bitfarms Ltd. announced that it has reached an agreement to sell its 70-megawatt Paso Pe bitcoin mining facility in Paraguay for up to $30 million, effectively marking its exit from the Latin American market. The company has signed a definitive share purchase agreement with the Sympatheia Power Fund, managed by Hawksburn Capital from Singapore.

This transaction is anticipated to close within 60 days, pending usual closing conditions.

Shifting Focus to North America

Bitfarms' CEO, Ben Gagnon, stated that this sale represents a strategic shift in the company’s energy portfolio towards North America. It enables the firm to reinvest its capital into more lucrative opportunities.

“This transaction accelerates around two to three years of expected free cash flows, allowing us to reinvest into our North American HPC and AI energy infrastructure by 2026,” Gagnon explained in a press release. The sale of the Paso Pe site is seen as part of a broader initiative to exit Latin America and prioritize power and infrastructure management in North America.

Moving Away from Bitcoin

Bitfarms has been repositioning itself from a bitcoin mining company to one that focuses on energy and digital infrastructure. This shift includes expanding into high-performance computing and artificial intelligence, which the company believes will yield higher long-term returns.

In November, Bitfarms announced plans to gradually wind down its Bitcoin operations by 2026 and 2027 after incurring a significant loss of $46 million in the third quarter of the year, which is nearly double the $24 million loss from the same time last year.

Details of the Transaction

Under the agreement's terms, the buyer will acquire shares of a dedicated subsidiary that holds all the operational assets linked to the Paso Pe project. The transaction values the site at up to $30 million.

Bitfarms expects to receive $9 million in cash upon closing, which is projected to occur in the first quarter of 2026. This figure includes a non-refundable deposit of $1 million already provided by the buyer. The company could receive an additional $21 million within ten months after closing, contingent upon the completion of specific payment benchmarks.

The structure of this deal is anticipated to bolster Bitfarms’ liquidity by enabling quicker monetization of the asset while providing short-term financing support.

Ensuring Operational Continuity

A representative from Sympatheia Power Fund noted that the acquisition is part of the fund's strategy to expand its crypto infrastructure regionally and highlighted the need for a smooth transition.

“Our main goal is to ensure a seamless transition from day one at Paso Pe as we enter this new growth phase,” said SPF representative, Josh Murchie.

Future Energy Portfolio

Once the transaction is finalized, Bitfarms will have an entirely North America-based energy portfolio. The company plans to operate with 341 megawatts of energized capacity, with an additional 430 megawatts currently in development in the United States. Overall, its multi-year pipeline stands at 2.1 gigawatts, with approximately 90% located in the U.S.